Case –Operations Management Harvard Case Solution & Analysis

Case –Operations Management Case Solution

Situation no. 1

            The store wants to promote new packages and has concerns over how many packages and in which proportion they have to be promoted to have the maximum cash generation. The store should give consideration over other promotional offers such as buy one, get one free and discounted products which will increase the sales and resulting more profits. The calculation shows that the store has to promote 50 packages of offer A and 50 packages of offer B which would provide the optimum results for the store. The value of $4000 can be generated from the above determined mixture through which the store can make a new room for new outfits.

50/50 mixture provides 50 shirts and 50 pants in package A, which would generate $1500 for the store and 150 shirts and 50 pants in package B which would generate $2500 for the store. The 50/50 mixture meets the criteria of 60% of the product as it provides 67% of shirts in a total promotion. This package overcomes all the constraints for the store and provides maximum money generation strategy.

If 50 of both packages
PackagesShirtspaintsvalue
A505050$          1,500
B5015050$          2,500$                       4,000
20010067%

Situation no. 2

          The company will have to provide better compensation to the workers which includes performance related bonuses and career growth based on the qualification that will increase the worker motivation and productivity.The current position of the company shows that every worker in the factory performs each job in a single day, which is against Adam Smith’s theory for employees, which states that if the worker performs numerous tasks in a single day, then the element of specialization will not be present and would result in low productivity and increased cost. In order to generate more profit with more productivity, the company should divide the jobs or tasks to a number of workers so that every worker will be able to specialize in a single job enabling him/her to learn more as well as to manage the cost by working on time.

 The calculation indicates that the worker 1 should perform job1 with his/her total working hours whereas worker 2 should perform job 2 with his/her total working hours. The remaining hours required to finish all jobs will be done by worker 5 and through this, worker 5 can monitor all jobs. Thus, the below mentioned schedule minimizes the total time required.

Time (hours)
WorkerJob 1Job 2Job 3Job 4
15000050
20560056
30051051
40005151
560142848
56566579256

Situation no. 3

The company wants to minimize the oil transport cost in meeting the demand for oil in Los Angeles and New York. The case deals focuses on cost however, the company should focus on the timing of transporting the oil to those areas which have high demand and to select that option which would take less time and incur less cost for the company. The calculation indicates that the company should fulfill the demand of New York by transporting oil directly from well 1 to New York as it would provide the minimum cost for the company.In case, the company selects an alternative, then it will incur increasing costs and may lose its profit....................

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